As many as 26,28,865 companies were registered in the country as on January 31, 2024, and out of the total, 16,65,438 companies, or 63 per cent were active, as per the latest official data
New Delhi:
The matters related to KYC (Know Your Customer), including a simplified and uniform system, are still under discussion, and a committee headed by the finance secretary is looking into various aspects.
The government has formed an expert committee headed by Finance Secretary T V Somanathan to make its recommendations on the matter bringing out uniform Know Your Customer (KYC) norms,
Earlier, the Financial Stability and Development Council (FSDC) in its meeting last week had discussed on the proposal to launch uniform KYC norms in the country.
The senior official on Monday said that various aspects related to having a uniform KYC are being discussed and in the case of the corporate affairs ministry, Permanent Account Number (PAN) is being used for KYC requirements.
The ministry is implementing the companies law and Limited Liability Partnership (LLP) Act, among other legislations.
Further, the official said enhanced KYC requirements might be explored for certain class of corporates.
As many as 26,28,865 companies were registered in the country as on January 31, 2024, and out of the total, 16,65,438 companies, or 63 per cent were active, as per the latest official data.
According to the data, a total number of 3,16,402 LLPs were active at the end of January this year. Meanwhile, the ministry-appointed panel is discussing possibilities of having a stricter regulatory regime for startups against the backdrop of instances of corporate governance concerns at some of the entities.
The Company Law Committee (CLC), which was set up by the ministry in September 2019, is yet to firm its views and a final decision will be taken after receiving the panel’s recommendations, the official said.
Over a period of time, the ministry has been clamping down on entities, suspected of carrying out illegal activities.
Last week, the Financial Stability and Development Council (FSDC), chaired by Finance Minister Nirmala Sitharaman, discussed strengthening inter-regulatory coordination in the financial sector to support inclusive economic growth.
The council also deliberated on prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification and digitalisation of the KYC process, among others.